Top Headlines Week 20, 2022
- Posted By David Brown
The Brisbane City Council has approved a $200 million expansion of the Rivergate Marina on the Brisbane River. This is in preparation for the 2032 Olympic Games, so the shipyard can accommodate superyachts. The plans to expand the 8.4ha maritime precinct at Murarrie was originally submitted in late 2020, the expansion is expected to dramatically increase superyacht visits to Australia. Since the open of the marina back in 2006, it has been attracting superyachts for refit, maintenance, and tourism. The Director of Rivergate Marina Tom Hill has said that plans to expand the marina have been in the pipeline for four years, this is to address the lack of infrastructure for lifting and berthing vessels over 45 metres. This is just some of the projects that independent companies are planning in preparation for the 2032 Olympics.
One of the leaders in the building industry may be falling into financial strife. Metricon is in urgent crisis talks and encouraging sales staff to increase cashflow. Earlier this week, the company’s co-founder and CEO Mario Biasin passed away unexpectedly, aged 71. Acting CEO Peter Langfelder denied rumours that the company is having solvency issues. Although the acting CEO seems confident that Metricon isn’t in financial troubles, they wouldn’t be the first major company to fall victim to financial crisis, with Probuild and Condev going into liquidation earlier this year. Metricon in recent months have already taken actions to ease financial stress and keep up with the supply chain issues by altering, offloading, and delaying contracts. Over the coming months Metricon will be one to watch to see if it will be the next victim in the construction sector.
A Noosa home has sold for $17 million, what makes this property stand out from the others is that it is a simple brick home that was built nearly four decades ago. Records show that the vendor bought the proeprty in the mid-80 for just $90K. The home was built in 1985 and has not had any major work done to it since. It is expected that the new owners will most likely demolish the house to make way for a new and modern build. The residence is unique as it is the only three-storey home to be approved by Noosa Shire Council along the Noosa Sound. The price is a reflection of the value of the land which is a 611 sqm block on Noosa Parade, with a 20m river frontage, and located only 400m from Hastings street. Noosa Parade is located on Noosa River and is a row of just 36 homes. Another home on Noosa Parade hit the market earlier this year and sold for $15 million, this home was also built in the 1980s.
Gold Coast has no doubt be outperforming the rest of Australia’s markets and the luxury home market has not been left behind. Luxury homes are expected to rise another 10% during this year. Gold Coast is now one of Australia’s fastest growing regions, with many buyers flocking to the city to the advantage of all Gold Coast has to offer. The city has experienced the median house price increase by almost 60% in some suburbs last year, seeing the effect flowing onto neighbouring suburbs. Gold Coast has now surpassed Sydney as the best preforming prime market in Australia after growing a massive 19.3% in the past 12 months. What has been supporting the surge of luxury properties is the increase of ultra-high-net-worth individuals, those with a net worth over $40 million. The population of these individuals increased by 10% last year, surpassing the global average. It is expected that this will have a flow-on effect to the luxury property market.
A major bank has warned that the interest rate rises that are to come will have a major impact on the Australian property market. It is predicted that prices are expected to fall a staggering 16% over the next 2 years. HSBC Chief Economist Paul Bloxham has predicted that rates will rise to 1.35% by the end of 2022, and he expects that by the second quarter of 2023 they will rise to 1.85%. This could see property prices fall as early as next year. Many housing markets around Australia have already begun to show the effects of interest rate rises, with the Sydney and Melbourne markets stalling since the beginning of the year. HSBC has revised their 2023 housing prediction from 1% - 4% increase to a 5% - 10% fall. With the RBA setting the official interest rate to 0.35%, this is the first interest rate rise in 11 years, and they predict that housing prices will drop 15%.